USAID to fund clean energy projects in Pakistan

ISLAMABAD: The U.S. Agency for International Development (USAID) and four local private commercial banks agreed to partner for clean energy projects in Pakistan.

In a statement released by U.S Embassy in Pakistan, through this agreement, approximately $88 million in financing will become available to support the development of the clean energy sector in Pakistan. Partner banks will be able to extend debt financing to smaller scale clean energy projects, developers, and companies or to households and businesses purchasing clean energy equipment.

Consul General Karachi Grace Shelton presided over the signing of a partnership agreement between the U.S. Agency for International Development (USAID) and four banks.

U.S. funding, this 15 year partnership will provide up to a 50 percent guarantee for loans made for clean energy projects.

USAID Assistant to the Administrator for Afghanistan-Pakistan Affairs William Hammink during his remarks said, “Under the program, smaller scale clean energy projects will be able to access long-term, Pakistani Rupee financing. The facility is expected to significantly improve access to financing for these smaller scale projects and encourage private investment in clean energy,”

The United States and Pakistan cooperate to support their efforts in energy growth, including through the U.S.-Pakistan Energy Working Group under the U.S.-Pakistan Strategic Dialogue. Under the U.S.-Pakistan Clean Energy Partnership, announced by President Obama and Prime Minister Muhammad Nawaz Sharif in October 2015, U.S. assistance supports increased energy generation, its transmission to Pakistan’s national grid, improved distribution, management, and revenue collection, as well as policy reforms.

The bilateral cooperation to produce clean energy will be another step to achieve the targets of renewable energy generation in the country. Pakistan has high potential for green energy projects which need to be exploited by more modern means.